Xpeng Aims to Boost European EV Production Ahead of New EU Rules
Xpeng plans to expand European production to meet new EU local content rules, with a focus on mid-level vehicles and partnerships.
POLICY WIRE — London, United Kingdom — Chinese electric vehicle manufacturer Xpeng is preparing to increase its European manufacturing capacity to align with upcoming European Union regulations that require a minimum percentage of locally sourced components in electric vehicles, according to vice president Yeqing Zheng.
Zheng spoke with Reuters at the Paris car show, highlighting that current production at Magna’s Austrian factory does not meet the company’s growing demand. Xpeng expects continued double-digit growth in Europe, prompting the need for additional manufacturing capabilities.
The company is considering partnerships with local manufacturers to either establish a new facility or utilize an existing one. The new line would focus on producing mid-range models with lower costs than the current Austrian plant. A decision on the project is expected within months, as Xpeng works to develop a local supply chain, including finding battery suppliers that can meet its specific energy density and charging requirements.
Reporting by Policy-Wire (PW)
